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Which rater error may cause difficulty in distinguishing among employees?
Zero Correlation
A statistical term indicating no linear relationship between two variables, meaning one variable does not predict the movement of the other.
Equity Tranche
The portion of a structured finance instrument that is first to absorb losses and last to receive payments.
Default
Failure to fulfill a legal obligation, especially failure to meet a debt payment or not fulfilling a contract condition.
Collateralized Debt Obligation
A complex structured finance product that pools together cash flow-generating assets and repackages them into tranches for sale to investors.
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